Realizing the Potential for Energy Efficiency and Carbon Reductions Alliance to Save Energy International Policy Leaders Dialogue September 25, 2008 Hank Courtright Senior Vice President

Electric Power Research Institute Founded in 1973 Independent, non-profit organization for public-interest energy and environmental research Collaborative approach involves ~450 participants in over 40 countries

Founded in 1973

Independent, non-profit organization for public-interest energy and environmental research

Collaborative approach involves ~450 participants in over 40 countries

The Potential for Electricity Savings Codes and Standards 1 Includes embedded impact of EE programs implicit in AEO 2008 2 Utility Programs Encourage Increased Adoption Market-driven Efficiency 1 + AEO 2008 Reference Case Avoided Electricity Consumption in 2030… + Maximum Achievable Potential 2 2000 2005 2010 2015 2020 2025 2030 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Energy (Billion kWh)

Action Framework… Four Evolving Infrastructures

Action Framework… Four Evolving Infrastructures

Transitioning to Low-Carbon Generation Large-Scale Wind, Solar and Biomass Nuclear – Advanced Light Water Reactors Advanced Coal with Carbon Capture and Storage Distributed Rooftop Solar There is no “silver bullet” … we need them all!

Large-Scale Wind, Solar and Biomass

Nuclear – Advanced Light Water Reactors

Advanced Coal with Carbon Capture and Storage

Distributed Rooftop Solar

EPRI Prism Transitioning to Low-Carbon Generation *Energy Information Administration (EIA) Annual Energy Outlook (AEO) On a path to de-carbonize the Electricity Sector Advanced Coal Generation DER (incl. Rooftop Solar) Plug-in Hybrid Elec. Vehicles Carbon Capture & Storage Nuclear Generation Renewable Generation Efficiency / ’07 Energy Act Technology

Action Framework… Four Evolving Infrastructures

Smart Grid Demonstration Project Distribution Consumer Transmission Substation Markets Interactive . . . Two-Way Communications

U.S. Peak Demand Reduction 200 400 600 800 1000 1200 1990 1995 2000 2005 2010 2015 2020 2025 2030 U.S. Summer Peak Demand* (GW) Reduced Peak Demand in 2030… Energy Efficiency Demand Response Achievable Potential * Aggregation of regional summer peak demands; non-coincident Realistic Achievable Potential ~ 15% Maximum Achievable Potential ~ 21%

Energy Efficiency

Demand Response

Realistic Achievable Potential ~ 15%

Maximum Achievable Potential ~ 21%

Action Framework… Four Evolving Infrastructures

Local Energy Networks… an Example Grid-Connected Consumer Portal

Becoming More Energy Efficient Utility Programs Encourage Increased Adoption Achievable Potential Consumers Respond to Technology Improvements and Market Effects Market – Driven Efficiency Consumers Comply with Efficiency Mandates Codes and Standards

EPRI’s Living Laboratory Evaluating and testing energy efficiency technology

Energy Efficiency Demonstration Project Heat Pump Water Heaters Variable Refrigerant Flow Air Conditioning Ductless Residential Heat Pumps and Air Conditioners Hyper-Efficient Residential Appliances LED Street and Area Lighting Efficient Data Centers High-profile field demonstrations of six “hyper-efficient” technologies with significant energy savings potential COMMERCIAL RESIDENTIAL

Action Framework… Four Evolving Infrastructures

Auto Industry Interest in PHEVs (and EVs) PHEV or EREV EV Production Demo Saturn VUE 2-Mode Blended Intro: 2011 CY Chevrolet Volt Extended Range EV 40-mile EV range 16kWh Li-Ion Intro: 2010 CY Ford Escape PHEV 2008 CY, 21 car fleet with SCE/EPRI/Utilities VW Golf TwinDrive 30 mile EV range 20-car fleet, 2009 Nissan 2010 CY Daimler Smart ForTwo 2010 CY Mitsubishi iMIEV 2010 CY, 100 mile range, PG&E, SCE demo Dodge ZEO 150-200 mile range Subaru R1e 50 Mile AER 10-car fleet 2008 CY Ford/Eaton Trouble Truck 10 truck fleet w/ utilities Toyota Prius PHEV 500-car fleet 2009 CY

Benefits of 20 Mile Range PHEV Annual Energy Consumption and Carbon Footprint Impact

PHEV – Electric Infrastructure Demos Understand the integration of electric grid and communications infrastructures Validate prior analytical work on environmental and societal benefits Understand consumer behavior and acceptance of this new technology

Understand the integration of electric grid and communications infrastructures

Validate prior analytical work on environmental and societal benefits

Understand consumer behavior and acceptance of this new technology

Action Framework… Four Evolving Infrastructures Creating the Electri city Net work of the Future